The Nationwide Building Society has cut selected fixed and tracker mortgage rates at 95% loan to value (LTV) by up to 0.50 percentage points.

The Society is offering a sub-3% rate for those with a 5% deposit. Rates for the 95% product start at 2.99% for the two-year tracker with a £999 fee and 3.39% with no fee, a reduction of 0.50%.

Meanwhile, three and five-year fixed rates at 95% LTV have also been reduced, with the three-year fixed product starting at 3.59% with a £999 fee and 3.89% with no fee, while the five-year fixed is 3.74% with a £999 fee and 3.94% with no fee.

At the same time, the maximum loan size at 95% LTV has been increased from £350,000 to £500,000 for all house purchase transactions, including for first time buyers.

In addition, the maximum LTV for further borrowing as well as those looking to remortgage to the Society with additional borrowing increasing to 90% LTV, apart from debt consolidation or repaying a non-Help to Buy second charge.

Henry Jordan, Nationwide’s director of mortgages, said: “We know that finding a deposit can be a challenge for those looking to take their first steps towards home ownership. The changes announced today offer competitive rates for those with small deposits, along with the added flexibility of being able to borrow up to £500,000, and are aimed at particularly supporting first time buyers, as well as those living in areas with higher property values.”